The Savannah region continues to experience capacity issues with warehouse space due to Port growth and in some cases moratoriums on new industrial development. As reported by CBRE for the first quarter of 2023, the vacancy rate for industrial space is at a near-record low. The Port of Savannah continues to gain market share from backlogged West Coast and Northeast ports and is now the third busiest in the nation.
One area of improvement for the supply side is in the City of Port Wentworth, an incorporated community in Chatham County located adjacent to the Port of Savannah. Until recently the City had a "full stop" moratorium in place on new industrial development that has lasted a full year as it worked to review and re-write its zoning ordinance. The revised zoning ordinance is now in place and new applications are once again being accepted by the City.
Warehouse growth continues in other parts of the region with Chatham County (Savannah), Bryan County (location of the new Hyundai EV auto assembly plant), and Effingham and Bulloch Counties all seeing unprecedented industrial growth. The race to keep up with existing demand from the Port related activities as well as the anticipated demand from the Hyundai project and its suppliers may well allow the Savannah region to put off, if not avoid completely, for the next few years the inevitable over-building supply issues that typically come with economic cycles.
